What does interest coverage mean?

How many times the company's operating profit covers its interest bill.

How do you interpret interest coverage?

Higher is safer; below ~2× is a warning that earnings provide little cushion against the debt burden. Debt-free companies have no interest expense and the ratio is left blank.

How does interest coverage compare across companies?

Comparable across leveraged non-financials; less relevant for net-cash companies with negligible interest.

ACRES Commercial Realty ACR Interest coverage

Interest coverage at other companies

Blackstone Mortgage TrustBXMT

1.1×—

Starwood Property TrustSTWD

1.3×0.0×

Apollo Commercial Real Estate FinanceARI

1.3×—

Seven Hills Realty TrustSEVN

1.5×0.0×

Granite Point Mortgage TrustGPMT

0.6×+0.6×

KKR Real Estate Finance TrustKREF

0.7×-0.4×

Other financials

Income statement

See full

Revenue$17.8M+4.8%

Net income$7.5M+1,131%

EPS (diluted)-$0.16+80.0%

Balance sheet

See full

Cash & equivalents$48.0M-27.3%

Total debt$1.9B+46.7%

Total equity$420.6M-2.2%

Total assets$2.5B+39.7%

Cash flow

See full

Operating cash flow$913.0K+120%

Valuation

See full

Market cap$117.66M-14.7%

Enterprise value$1.93B+43.0%

P/E3.3×-2.7×

P/S1.5×-0.2×

Profitability

See full

Net margin44.9%+16.7pp

Returns & leverage

See full

Return on equity8.5%+3.2pp

Debt / equity4.4×+1.5×

Questions, answered.

What does interest coverage mean?: How many times the company's operating profit covers its interest bill.
How do you interpret interest coverage?: Higher is safer; below ~2× is a warning that earnings provide little cushion against the debt burden. Debt-free companies have no interest expense and the ratio is left blank.
How does interest coverage compare across companies?: Comparable across leveraged non-financials; less relevant for net-cash companies with negligible interest.